Constitution of India – Art. 244(1), 243-X, 243-ZC, Fifth Schedule Paragraph 5 – Law applicable to Schedule Area – Terminal tax – Levy of, within the limits of the Municipal Council – Challenge to, by the owner of coal mining colliery in Madhya Pradesh – Rejected by the High Court on the ground that the land from where the owner carried out its coal mining operations fell within the limits of the Municipal Council which had power to levy the terminal tax; and that no exceptions notified to the power of the Municipal Council under the Constitution – Correctness:
Held: Paragraph 5(1) of the Fifth Schedule enables the Governor to direct either that a parliamentary or state law shall not apply to a Scheduled Area in the State or that it would apply subject to exceptions and modifications – Thus, unless a notifi cation has been issued by the Governor indicating that a parliamentary or State law shall have no application to the Scheduled Area; or the parliamentary or State legislation would apply subject to exceptions or modifi cations, there would be no hindrance in the application of the law to the State – Furthermore, the inapplicability of Art. 243X wherein the legislature of the State may authorise the Municipality to levy taxes, did not denude the State legislature to enact legislation for the State – No such notification produced before the High Court nor this Court other than the notification of 2003 specifying the Scheduled Areas – In view thereof, the conclusion of the High Court cannot be faulted – Madhya Pradesh Municipal Corporation Act 1956 – Madhya Pradesh Municipalities Act 1961 – Terminal Tax (Assessment and Collection) on the Goods Exported from Madhya Pradesh Municipal Limits Rules 1996 – r. 2(c). [Paras 13 and 16]
LIST OF CITATIONS AND OTHER REFERENCES
Central India Spinning and Weaving & Manufacturing Co. Ltd. The Empress Mills, Nagpur v. The Municipal Committee, Wardha 1958 SCR 1102 – referred to.
OTHER CASE DETAILS INCLUDING IMPUGNED
ORDER AND APPEARANCES
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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